Feedstock Shifts In Focus, As North American Costs Broadly Inflate YTD

Feedstock Market Trends: North American petrochemical producers hold a sizable cost advantage compared to Europe and Asia. However, this advantage has shrunk YTD as its feedstock costs have increased relatively.
Chemical Market Trends: Global monomer and base chemical values, on average, rose WoW, with ethylene showing less support than its co-products. Methanol values declined with global natural gas prices.
Polymer Market Trends: Global polymer prices also reflect support WoW, with polyethylene (PE) spot prices in North America reflecting more support than Asia and Europe and outpacing domestic spot ethylene increases.
Agriculture Market Trends: US Ammonia prices have fallen compared to natural gas costs since late 4Q amid slow demand and its production advantage relative to Europe and Asia shrinking with ex-US natural gas prices.

Exhibit 1 – Chart of the Day: Chemical feedstocks have risen more YTD in North America relative to Asia and Europe.